We have a lot of news about bitcoin prices skyrocketing, to thousands of dollars!! Not a pair, nor a lot; it’s a single coin that costs you close to 10k$!! sounds so weird, isn’t it?? a coin, that we can’t see, we can’t feel, not able to buy most of the things with them, not able to see them, yet the coin is the most expensive one on earth!!!
Why? What is so special about it? why is the price of bitcoin, Ethereum and other digital currencies raising up and up? Maybe there is a huge demand for them? the coins are highly volatile, and the market is always open; just like a forex market!! Are these alone the reasons?
Well, not alone that, there are many other reasons, for the bitcoin price to surge high. They are nothing but currencies and have their own share of demand and supply, and they are technologically mined and used hence they have their own set of reasons for being exorbitantly priced. Here is a few compiled one; from a genuine source:
Supply to limit in the longer run:
There might be a finite supply of bitcoins and crypto in the coming years, considering the accumulation level and its performance, and the technology involved in mining, the demand is increasing to accumulate as much as possible when the coins are in controlled price. The reasons are that the market price fluctuates again because of huge demand, and of those that hold them.
Media and Hype:
There is a lot more into the media news these days, that eventually creates a hype for the thing, though it may not. It puts the traders, the investors and the spectators in a different perspective altogether, changes the perception according to the movement of the coin.
The market cap placed at these coins influence how they are perceived. The traders try to make most out of its day fluctuations; while the investors seek on long term investment. While there are different players, the number of bitcoins that can be sold in day or accumulated will change and again leading to the surge in price cause of the increased demand.
The events across the globe, like the country doing well, creating something new, or losing up on to someone; countries that support crypto mining and those who don’t, nations that are into new trade regulations and so on; the whole global market affect the crypto price.